Delphi, GM near deal with UAW
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Delphi, GM near deal with UAW
Delphi, GM near deal with UAW
Deal could be struck within 2 days; would help parts supplier emerge from bankruptcy.
June 14 2007: 4:42 PM EDT
DETROIT (Reuters) -- General Motors Corp. and bankrupt auto parts maker Delphi Corp. are "very close" to a deal with the United Auto Workers union that would help the supplier emerge from bankruptcy, sources familiar with the situation said Thursday.
A deal could be reached within 48 hours to a week, sources said, declining to provide any more details.
GM shares rose $1.43, or 4.5 percent, to $33.53 in afternoon trading on the New York Stock Exchange.
Separately, the Detroit News reported the parties are near a deal that would provide a cash payout to Delphi workers in exchange for lower hourly wages. GM would fund the program, according to the report.
GM (Charts, Fortune 500) was not immediately available for comment, and UAW spokesman Roger Kerson declined comment.
Delphi spokesman Lindsey Williams said: "It suffices to say that we are still working on it."
The deal at Delphi would offer 4,000 UAW workers a cash payment in return for accepting lower wages that could range from $14 to $18 per hour, the Detroit News said. The amount of the cash payment was not specified.
Workers could also take the lump sum and accept early retirement or return to GM, the newspaper said, quoting people familiar with the talks.
Shortly after it filed for bankruptcy, Delphi said hourly wages were about $27, and in March 2006, it proposed a reduction in wages to $16.50 per hour with a $50,000 wage buy-down payment.
A Delphi settlement would remove a major uncertainty for GM, which next month begins its own contract talks with the UAW. GM and other automakers will be seeking deep concessions intended to bring their labor costs in line with rivals such as Toyota Motor Corp (Charts).
GM has estimated its financial exposure from the Delphi restructuring at $7 billion and said it could take a charge of $1 billion this quarter related to the costs of a settlement.
How a Chinese minivan put GM in backseat
The continuing impasse at Delphi has been seen as a major risk to GM because a work stoppage at the company, which remains GM's largest parts supplier, has the potential to shut down production at the automaker.
Delphi, which filed for bankruptcy in October 2005, has been in talks with its unions and GM over agreements needed to complete a recapitalization plan and emerge from bankruptcy.
The Troy, Michigan-based parts maker reached agreements with its unions and GM on buyouts last year that allowed about 20,000 U.S. unionized hourly workers to leave Delphi. Contracts covering the wages of remaining workers, and more recently hired replacements, have proved to be a bigger hurdle.
http://money.cnn.com/2007/06/14/news...ce=yahoo_quote
Would be nice to see the Delphi thing one step closer to resolve.
Deal could be struck within 2 days; would help parts supplier emerge from bankruptcy.
June 14 2007: 4:42 PM EDT
DETROIT (Reuters) -- General Motors Corp. and bankrupt auto parts maker Delphi Corp. are "very close" to a deal with the United Auto Workers union that would help the supplier emerge from bankruptcy, sources familiar with the situation said Thursday.
A deal could be reached within 48 hours to a week, sources said, declining to provide any more details.
GM shares rose $1.43, or 4.5 percent, to $33.53 in afternoon trading on the New York Stock Exchange.
Separately, the Detroit News reported the parties are near a deal that would provide a cash payout to Delphi workers in exchange for lower hourly wages. GM would fund the program, according to the report.
GM (Charts, Fortune 500) was not immediately available for comment, and UAW spokesman Roger Kerson declined comment.
Delphi spokesman Lindsey Williams said: "It suffices to say that we are still working on it."
The deal at Delphi would offer 4,000 UAW workers a cash payment in return for accepting lower wages that could range from $14 to $18 per hour, the Detroit News said. The amount of the cash payment was not specified.
Workers could also take the lump sum and accept early retirement or return to GM, the newspaper said, quoting people familiar with the talks.
Shortly after it filed for bankruptcy, Delphi said hourly wages were about $27, and in March 2006, it proposed a reduction in wages to $16.50 per hour with a $50,000 wage buy-down payment.
A Delphi settlement would remove a major uncertainty for GM, which next month begins its own contract talks with the UAW. GM and other automakers will be seeking deep concessions intended to bring their labor costs in line with rivals such as Toyota Motor Corp (Charts).
GM has estimated its financial exposure from the Delphi restructuring at $7 billion and said it could take a charge of $1 billion this quarter related to the costs of a settlement.
How a Chinese minivan put GM in backseat
The continuing impasse at Delphi has been seen as a major risk to GM because a work stoppage at the company, which remains GM's largest parts supplier, has the potential to shut down production at the automaker.
Delphi, which filed for bankruptcy in October 2005, has been in talks with its unions and GM over agreements needed to complete a recapitalization plan and emerge from bankruptcy.
The Troy, Michigan-based parts maker reached agreements with its unions and GM on buyouts last year that allowed about 20,000 U.S. unionized hourly workers to leave Delphi. Contracts covering the wages of remaining workers, and more recently hired replacements, have proved to be a bigger hurdle.
http://money.cnn.com/2007/06/14/news...ce=yahoo_quote
Would be nice to see the Delphi thing one step closer to resolve.
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